FDIC Board to Propose Revised Definitions for Subprime, Leveraged Loan Reporting

The FDIC Board on Tuesday will issue a proposal containing long-awaited revised definitions of subprime consumer loans and leveraged commercial loans for banks with more than $10 billion in assets that are subject to the large-bank pricing rule.

The proposal will culminate ABA’s intense effort to change those definitions in the final rule. ABA persuaded the FDIC to reconsider the definitions, and also allow affected banks to use long-standing, existing supervisory definitions until Oct. 1. Meanwhile, the association organized a banker group to work with FDIC staff members to develop more-workable definitions.

ABA expects the proposed revised definitions to significantly reduce the cost of reporting under the large-bank pricing rule.

Read the meeting notice.